0001564590-22-015675 | 10-Q | XBRL Viewer

Unamortized discount and issuance costs

$ 55,666

$ 63,910

(481)

(511)

Hedge fair value adjustments

^[1]

(43)

Premium on debt exchange

^[2]

(5,216)

(5,293)

Total debt

49,926

58,146

Current portion of long-term debt

(1,749)

(8,072)

Long-term debt

$ 48,177

50,074

2009 Issuance of $3.8 billion

^[2]

2039

^[2]

5.20%

^[2]

5.24%

2010 Issuance of $4.8 billion

^[2]

$ 520

520

^[2]

2040

^[2]

4.50%

^[2]

4.57%

2011 Issuance of $2.3 billion

^[2]

$ 486

486

^[2]

2041

^[2]

5.30%

^[2]

5.36%

2012 Issuance of $2.3 billion

^[2]

$ 718

718

2012 Issuance of $2.3 billion | Minimum

^[2]

$ 1,204

1,204

^[2]

2022

^[2]

2.13%

2012 Issuance of $2.3 billion | Maximum

^[2]

2.24%

^[2]

2042

^[2]

3.50%

2013 Issuance of $5.2 billion

^[2]

3.57%

2013 Issuance of $5.2 billion | Minimum

^[2]

$ 2,814

2,814

^[2]

2023

^[2]

2.38%

2013 Issuance of $5.2 billion | Maximum

^[2]

2.47%

^[2]

2043

^[2]

4.88%

2013 Issuance of €4.1 billion

^[2]

4.92%

2013 Issuance of €4.1 billion | Minimum

$ 2,559

4,803

2028

2.63%

2013 Issuance of €4.1 billion | Maximum

2.69%

2033

3.13%

2015 Issuance of $23.8 billion

3.22%

2015 Issuance of $23.8 billion | Minimum

^[2]

$ 10,805

12,305

^[2]

2022

^[2]

2.65%

2015 Issuance of $23.8 billion | Maximum

^[2]

2.72%

^[2]

2055

^[2]

4.75%

2016 Issuance of $19.8 billion

^[2]

4.78%

2016 Issuance of $19.8 billion | Minimum

^[2]

$ 9,430

12,180

^[2]

2023

^[2]

2.00%

2016 Issuance of $19.8 billion | Maximum

^[2]

2.10%

^[2]

2056

^[2]

3.95%

2017 Issuance of $17.0 billion

^[2]

4.03%

2017 Issuance of $17.0 billion | Minimum

^[2]

$ 8,945

10,695

^[2]

2024

^[2]

2.88%

2017 Issuance of $17.0 billion | Maximum

^[2]

3.04%

^[2]

2057

^[2]

4.50%

2020 Issuance of $10.0 billion

^[2]

4.53%

2020 Issuance of $10.0 billion | Minimum

^[2]

$ 10,000

10,000

^[2]

2050

^[2]

2.53%

2020 Issuance of $10.0 billion | Maximum

^[2]

2.53%

^[2]

2060

^[2]

2.68%

2021 issuance of $8.2 billion

^[2]

2.68%

2021 issuance of $8.2 billion | Minimum

^[2]

$ 8,185

^[2]

2052

^[2]

2.92%

2021 issuance of $8.2 billion | Maximum

^[2]

2.92%

^[2]

2062

^[2]

3.04%

Revenue From Contract With Customer [Abstract]

^[2]

3.04%

[1]	Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.
[2]	In March 2021 and June 2020, we exchanged a portion of our existing debt at a premium for cash and new debt with longer maturities. The premiums are amortized over the terms of the new debt.

ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

Our unaudited interim consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Microsoft Corporation fiscal year 2021 Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on July 29, 2021.

Principles of Consolidation

The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated.

Estimates and Assumptions

Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the market value of, and demand for, our inventory; stock-based compensation forfeiture rates; when technological feasibility is achieved for our products; the potential outcome of uncertain tax positions that have been recognized in our consolidated financial statements or tax returns; and determining the timing and amount of impairments for investments. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19.

Financial Instruments

Investments

We consider all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations.

Debt investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding credit losses and impairments, are recorded in other comprehensive income. Fair value is calculated based on publicly available market information or other estimates determined by management. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, we employ a systematic methodology that considers available quantitative and qualitative evidence. In addition, we consider specific adverse conditions related to the financial health of, and business outlook for, the investee. If we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in other income (expense), net and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, we may incur future impairments.

Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured using the equity method or measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). We perform a qualitative assessment on a periodic basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in other income (expense), net.

Derivatives

Derivative instruments are recognized as either assets or liabilities and measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation.

For derivative instruments designated as fair value hedges, gains and losses are recognized in other income (expense), net with offsetting gains and losses on the hedged items. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in other income (expense), net.

For derivative instruments designated as cash flow hedges, gains and losses are initially reported as a component of other comprehensive income and subsequently recognized in other income (expense), net with the corresponding hedged item. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in other income (expense), net.

For derivative instruments that are not designated as hedges, gains and losses from changes in fair values are primarily recognized in other income (expense), net.

Fair Value Measurements

We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

•

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. Our Level 1 investments include U.S. government securities, common and preferred stock, and mutual funds. Our Level 1 derivative assets and liabilities include those actively traded on exchanges.

•

Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit spreads, foreign exchange rates, and forward and spot prices for currencies. Our Level 2 investments include commercial paper, certificates of deposit, U.S. agency securities, foreign government bonds, mortgage- and asset-backed securities, corporate notes and bonds, and municipal securities. Our Level 2 derivative assets and liabilities include certain over-the-counter forward, option, and swap contracts.

•

Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 assets and liabilities include investments in corporate notes and bonds, municipal securities, and goodwill and intangible assets, when they are recorded at fair value due to an impairment charge. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities.

We measure equity investments without readily determinable fair values on a nonrecurring basis. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections.

Our other current financial assets and current financial liabilities have fair values that approximate their carrying values.

Contract Balances and Other Receivables

As of March 31, 2022 and June 30, 2021, other receivables due from suppliers were $1.0 billion and $965 million, respectively, and are included in accounts receivable, net in our consolidated balance sheets.

As of March 31, 2022 and June 30, 2021, long-term accounts receivable, net of allowance for doubtful accounts, was $3.6 billion and $3.4 billion, respectively, and is included in other long-term assets in our consolidated balance sheets.

We record financing receivables when we offer certain of our customers the option to acquire our software products and services offerings through a financing program in a limited number of countries. As of March 31, 2022 and June 30, 2021, our financing receivables, net were $2.4 billion and $4.4 billion, respectively, for short-term and long-term financing receivables, which are included in other current assets and other long-term assets in our consolidated balance sheets. We record an allowance to cover expected losses based on troubled accounts, historical experience, and other currently available evidence.

Recent Accounting Guidance

Accounting for Income Taxes

In December 2019, the FASB issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. We adopted the standard effective July 1, 2021. Adoption of the standard did not have a material impact on our consolidated financial statements.

Derivatives - Additional Information (Detail) - USD ($)	9 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Mar. 31, 2022	Jun. 30, 2021
Derivative [Line Items]
Minimum required liquidity under certain counterparty agreements	$ 1,000,000,000.0
Minimum liquidity for the period as defined by certain counterparty agreements	1,000,000,000.0
Gross amounts of derivative assets, elected to offset	314,000,000	$ 395,000,000
Gross amounts of derivative liabilities, elected to offset	$ 426,000,000	$ 335,000,000
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating	AAA

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Mar. 31, 2022	Mar. 31, 2021
Equity [Abstract]
Declaration Date	Mar. 14, 2022	Dec. 07, 2021	Sep. 14, 2021	Mar. 16, 2021	Dec. 02, 2020	Sep. 15, 2020
Record Date	May 19, 2022	Feb. 17, 2022	Nov. 18, 2021	May 20, 2021	Feb. 18, 2021	Nov. 19, 2020
Payment Date	Jun. 09, 2022	Mar. 10, 2022	Dec. 09, 2021	Jun. 10, 2021	Mar. 11, 2021	Dec. 10, 2020
Dividend Per Share	$ 0.62	$ 0.62	$ 0.62	$ 0.56	$ 0.56	$ 0.56	$ 1.86	$ 1.68
Amount	$ 4,639	$ 4,645	$ 4,652	$ 4,214	$ 4,221	$ 4,230	$ 13,936	$ 12,665

UNEARNED REVENUE (Tables)

9 Months Ended

Mar. 31, 2022

Unearned Revenue by Segment

Unearned revenue by segment was as follows:

(In millions)


	March 31, 2022		June 30, 2021

Productivity and Business Processes	$	18,578	$	22,120
Intelligent Cloud		14,524		17,710
More Personal Computing		3,694		4,311


Total	$	36,796	$	44,141

Changes in Unearned Revenue

Changes in unearned revenue were as follows:

(In millions)


Nine Months Ended March 31, 2022

Balance, beginning of period	$	44,141
Deferral of revenue		70,939
Recognition of unearned revenue		(78,284	)


Balance, end of period	$	36,796

Investments - Additional Information (Detail) - USD ($) $ in Billions	Mar. 31, 2022	Jun. 30, 2021
Investments Debt And Equity Securities [Abstract]
Equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments	$ 3.8	$ 3.3

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	$ (1)	$ 0	$ (7)	$ 12
Net change related to other comprehensive income (loss), tax	2	6	2	10
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	(769)	(451)	(1,076)	(629)
Net change related to other comprehensive income (loss), tax	(766)	(453)	(1,075)	(639)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax	$ 0	$ 0	$ 0	$ (9)

Gains (Losses), Net of Tax, on Derivative Instruments Recognized on Consolidated Comprehensive Income Statements (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Included in effectiveness assessment	$ (6)	$ (2)	$ (27)	$ 43

GOODWILL

9 Months Ended

Mar. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL

NOTE 8 — GOODWILL

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2021		Acquisitions			Other			March 31, 2022


Productivity and Business Processes	$	24,317	$	599		$	(9	)	$	24,907
Intelligent Cloud		13,256		16,879	^(a)		83			30,218
More Personal Computing		12,138		224			(116	)		12,246


Total	$	49,711	$	17,702		$	(42	)	$	67,371

(a)	Includes goodwill of $16.3 billion related to Nuance. See Note 7 – Business Combinations for further information.

The measurement periods for the valuation of assets acquired and liabilities assumed end as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available, but do not exceed 12 months. Adjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined.

Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as “Other” in the table above. Also included in “Other” are business dispositions and transfers between segments due to reorganizations, as applicable.

Debt - Additional Information (Detail) - USD ($) $ in Billions	Mar. 31, 2022	Jun. 30, 2021
Debt Disclosure [Abstract]
Long-term debt fair value	$ 55.9	$ 70.0

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Revenue	$ 49,360	$ 41,706	$ 146,405	$ 121,936
Cost of revenue	15,615	13,045	46,221	38,241
Gross margin	33,745	28,661	100,184	83,695
Research and development	6,306	5,204	17,663	15,029
Sales and marketing	5,595	5,082	15,521	14,260
General and administrative	1,480	1,327	4,151	3,585
Operating income	20,364	17,048	62,849	50,821
Other income (expense), net	(174)	188	380	876
Income before income taxes	20,190	17,236	63,229	51,697
Provision for income taxes	3,462	1,779	7,231	6,884
Net income	$ 16,728	$ 15,457	$ 55,998	$ 44,813
Earnings per share:
Basic	$ 2.23	$ 2.05	$ 7.46	$ 5.93
Diluted	$ 2.22	$ 2.03	$ 7.41	$ 5.88
Weighted average shares outstanding:
Basic	7,493	7,539	7,504	7,554
Diluted	7,534	7,597	7,552	7,617
Product
Revenue	$ 17,366	$ 16,873	$ 54,776	$ 52,136
Cost of revenue	4,584	4,277	14,707	13,932
Service and Other
Revenue	31,994	24,833	91,629	69,800
Cost of revenue	$ 11,031	$ 8,768	$ 31,514	$ 24,309

SEGMENT INFORMATION AND GEOGRAPHIC DATA

9 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION AND GEOGRAPHIC DATA

NOTE 17 — SEGMENT INFORMATION AND GEOGRAPHIC DATA

In its operation of the business, management, including our chief operating decision maker, who is also our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis not consistent with GAAP. During the periods presented, we reported our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

Our reportable segments are described below.

Productivity and Business Processes

Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:

•

Office Commercial (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, and Office licensed on-premises), comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business.

•

Office Consumer, including Microsoft 365 Consumer subscriptions, Office licensed on-premises, and other Office services.

•

LinkedIn, including Talent Solutions, Marketing Solutions, Premium Subscriptions, Sales Solutions, and Learning Solutions.

•

Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, Customer Insights, Power Apps, and Power Automate; and on-premises ERP and CRM applications.

Intelligent Cloud

Our Intelligent Cloud segment consists of our public, private, and hybrid server products and cloud services that can power modern business and developers. This segment primarily comprises:

•

Server products and cloud services, including Azure and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (“CALs”); and Nuance and GitHub.

•

Enterprise Services, including Enterprise Support Services, Microsoft Consulting Services, and Nuance professional services.

More Personal Computing

Our More Personal Computing segment consists of products and services that put customers at the center of the experience with our technology. This segment primarily comprises:

•

Windows, including Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; and Windows Internet of Things.

•

Devices, including Surface and PC accessories.

•

Gaming, including Xbox hardware and Xbox content and services, comprising digital transactions, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services, and advertising.

•

Search and news advertising.

Revenue and costs are generally directly attributed to our segments. However, due to the integrated structure of our business, certain revenue recognized and costs incurred by one segment may benefit other segments. Revenue from certain contracts is allocated among the segments based on the relative value of the underlying products and services, which can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit margin. Cost of revenue is allocated in certain cases based on a relative revenue methodology. Operating expenses that are allocated primarily include those relating to marketing of products and services from which multiple segments benefit and are generally allocated based on relative gross margin.

In addition, certain costs incurred at a corporate level that are identifiable and that benefit our segments are allocated to them. These allocated costs include legal, including settlements and fines, information technology, human resources, finance, excise taxes, field selling, shared facilities services, and customer service and support. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Certain corporate-level activity is not allocated to our segments.

Segment revenue and operating income were as follows during the periods presented:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


	2022		2021		2022		2021

Revenue

Productivity and Business Processes	$	15,789	$	13,552	$	46,764	$	39,224
Intelligent Cloud		19,051		15,118		54,342		42,705
More Personal Computing		14,520		13,036		45,299		40,007


Total	$	49,360	$	41,706	$	146,405	$	121,936


Operating Income

Productivity and Business Processes	$	7,184	$	6,029	$	22,453	$	17,916
Intelligent Cloud		8,281		6,425		24,040		18,339
More Personal Computing		4,899		4,594		16,356		14,566


Total	$	20,364	$	17,048	$	62,849	$	50,821

No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for the three or nine months ended March 31, 2022 or 2021. Revenue, classified by the major geographic areas in which our customers were located, was as follows:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


	2022		2021		2022		2021

United States ^(a)	$	24,771	$	20,373	$	74,064	$	61,234
Other countries		24,589		21,333		72,341		60,702


Total	$	49,360	$	41,706	$	146,405	$	121,936

(a)	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Revenue from external customers, classified by significant product and service offerings, was as follows:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


	2022		2021		2022		2021

Server products and cloud services	$	17,038	$	13,204	$	48,482	$	37,128
Office products and cloud services		11,164		10,016		33,223		29,175
Windows		6,077		5,463		18,353		16,128
Gaming		3,740		3,533		12,775		11,656
LinkedIn		3,437		2,562		10,104		7,345
Search and news advertising		2,945		2,401		8,665		6,730
Enterprise Services		1,891		1,803		5,505		5,135
Devices		1,764		1,599		5,410		5,339
Other		1,304		1,125		3,888		3,300


Total	$	49,360	$	41,706	$	146,405	$	121,936

We have recast certain previously reported amounts in the table above to conform to the way we internally manage and monitor our business.

Our Microsoft Cloud (formerly commercial cloud) revenue, which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $23.4 billion and $66.2 billion for the three and nine months ended March 31, 2022, respectively, and $17.7 billion and $49.6 billion for the three and nine months ended March 31, 2021, respectively. These amounts are primarily included in Server products and cloud services, Office products and cloud services, and LinkedIn in the table above.

Assets are not allocated to segments for internal reporting presentations. A portion of amortization and depreciation is included with various other costs in an overhead allocation to each segment. It is impracticable for us to separately identify the amount of amortization and depreciation by segment that is included in the measure of segment profit or loss.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 34
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents

DERIVATIVES (Tables)

9 Months Ended

Mar. 31, 2022

The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents:

(In millions)	March 31, 2022		June 30, 2021


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	635	$	635
Foreign exchange contracts sold		0		6,081
Interest rate contracts purchased		1,160		1,247

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		8,151		14,223
Foreign exchange contracts sold		13,929		23,391
Other contracts purchased		2,757		2,456
Other contracts sold		869		763

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative				Derivative		Derivative			Derivative
(In millions)	Assets				Liabilities		Assets			Liabilities


	March 31, 2022						June 30, 2021

Designated as Hedging Instruments

Foreign exchange contracts	$	0		$	(39	)	$	76		$	(8	)
Interest rate contracts		0			(43	)		40			0

Not Designated as Hedging Instruments

Foreign exchange contracts		234			(322	)		227			(291	)
Other contracts		96			(25	)		56			(36	)


Gross amounts of derivatives		330			(429	)		399			(335	)
Gross amounts of derivatives offset in the balance sheet		(175	)		177			(141	)		142
Cash collateral received		0			(175	)		0			(42	)


Net amounts of derivatives	$	155		$	(427	)	$	258		$	(235	)


Reported as

Short-term investments	$	33		$	0		$	78		$	0
Other current assets		167			0			137			0
Other long-term assets		(45	)		0			43			0
Other current liabilities		0			(311	)		0			(182	)
Other long-term liabilities		0			(116	)		0			(53	)


Total	$	155		$	(427	)	$	258		$	(235	)

The following table presents the fair value of our derivatives instruments on a gross basis:

(In millions)	Level 1			Level 2		Level 3		Total


March 31, 2022

Derivative assets	$	0	$	314		$	16	$	330
Derivative liabilities		0		(429	)		0		(429	)

June 30, 2021

Derivative assets		0		396			3		399
Derivative liabilities		0		(335	)		0		(335	)

Gains (Losses) on Derivative Instruments

Gains (losses) on derivative instruments recognized in other income (expense), net were as follows:

(In millions)	Three Months Ended March 31,							Nine Months Ended March 31,


		2022			2021			2022			2021

Designated as Fair Value Hedging Instruments

Foreign exchange contracts
Derivatives	$	0		$	482		$	49		$	189
Hedged items		0			(474	)		(50	)		(181	)
Excluded from effectiveness assessment		0			7			4			25

Interest rate contracts
Derivatives		(57	)		(41	)		(71	)		(50	)
Hedged items		61			46			83			62

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		(15	)		(26	)		(44	)		15

Not Designated as Hedging Instruments

Foreign exchange contracts		35			(130	)		308			67
Other contracts		(29	)		(17	)		(41	)		(10	)

Cash Flow Hedges | Other Comprehensive Income (Loss)

Gains (Losses) on Derivative Instruments

Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows:

(In millions)	Three Months Ended March 31,							Nine Months Ended March 31,


	2022			2021				2022			2021

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	(6	)	$	(2	)	$	(27	)	$	43

COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 16,728	$ 15,457	$ 55,998	$ 44,813
Other comprehensive income (loss), net of tax:
Net change related to derivatives	6	18	8	30
Net change related to investments	(2,882)	(1,705)	(4,047)	(2,398)
Translation adjustments and other	(37)	(218)	(259)	634
Other comprehensive loss	(2,913)	(1,905)	(4,298)	(1,734)
Comprehensive income	$ 13,815	$ 13,552	$ 51,700	$ 43,079

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	$ 635	$ 635
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	0	6,081
Designated as Hedging Instruments \| Interest Rate Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	1,160	1,247
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	8,151	14,223
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	13,929	23,391
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	2,757	2,456
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	$ 869	$ 763

Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01	Mar. 31, 2022
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue allocated to remaining performance obligations, percentage of revenue expected to be recognized	50.00%
Revenue allocated to remaining performance obligations, expected timing of satisfaction	12 months

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Income Taxes [Line Items]
Effective tax rate	17.00%		10.00%	11.00%	13.00%
Provision (benefit) for income taxes	$ 3,462		$ 1,779	$ 7,231	$ 6,884
Long-term income taxes	26,483			26,483		$ 27,190
Unrecognized Tax Benefits and Other Income Tax Liabilities
Income Taxes [Line Items]
Long-term income taxes	$ 16,000			$ 16,000		$ 15,900
Earliest Tax Year
Income Taxes [Line Items]
Tax years impacted	1996
Latest Tax Year
Income Taxes [Line Items]
Tax years impacted	2016
India Supreme Court
Income Taxes [Line Items]
Provision (benefit) for income taxes			$ (620)
Transfer of Intangible Properties
Income Taxes [Line Items]
Provision (benefit) for income taxes		$ (3,300)

Major Classes of Assets and Liabilities Allocated Purchase Price (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 04, 2022	Mar. 31, 2022	Jun. 30, 2021
Business Acquisition [Line Items]
Debt	$ 986
Redeemed debt	947
Other current liabilities	$ 39	$ 11,865	$ 11,666

Carrying Amount of Goodwill (Parenthetical) (Detail) - USD ($)
$ in Millions

Mar. 31, 2022

Mar. 04, 2022

^[1]

Jun. 30, 2021

Nuance Communications Inc.

$ 67,371

$ 49,711

Commitments And Contingencies Disclosure [Abstract]

$ 16,300

$ 16,295

[1]	Goodwill was assigned to our Intelligent Cloud segment and was primarily attributed to increased synergies that are expected to be achieved from the integration of Nuance. None of the goodwill is expected to be deductible for income tax purposes

BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 12,498	$ 14,224
Short-term investments	92,195	116,110
Total cash, cash equivalents, and short-term investments	104,693	130,334
Accounts receivable, net of allowance for doubtful accounts of $505 and $751	32,613	38,043
Inventories	3,296	2,636
Other current assets	13,320	13,393
Total current assets	153,922	184,406
Property and equipment, net of accumulated depreciation of $58,053 and $51,351	70,298	59,715
Operating lease right-of-use assets	12,916	11,088
Equity investments	6,907	5,984
Goodwill	67,371	49,711
Intangible assets, net	11,348	7,800
Other long-term assets	21,845	15,075
Total assets	344,607	333,779
Current liabilities:
Accounts payable	16,085	15,163
Current portion of long-term debt	1,749	8,072
Accrued compensation	9,067	10,057
Short-term income taxes	4,646	2,174
Short-term unearned revenue	34,027	41,525
Other current liabilities	11,865	11,666
Total current liabilities	77,439	88,657
Long-term debt	48,177	50,074
Long-term income taxes	26,483	27,190
Long-term unearned revenue	2,769	2,616
Deferred income taxes	304	198
Operating lease liabilities	11,357	9,629
Other long-term liabilities	15,154	13,427
Total liabilities	181,683	191,791
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,483 and 7,519	85,767	83,111
Retained earnings	79,633	57,055
Accumulated other comprehensive income (loss)	(2,476)	1,822
Total stockholders’ equity	162,924	141,988
Total liabilities and stockholders’ equity	$ 344,607	$ 333,779

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2022 (excluding the nine months ended March 31, 2022)	$ 618
Year Ending June 30, 2023	2,579
Year Ending June 30, 2024	2,275
Year Ending June 30, 2025	1,551
Year Ending June 30, 2026	1,110
Thereafter	3,215
Net Carrying Amount	$ 11,348	$ 7,800

CONTINGENCIES

9 Months Ended

Mar. 31, 2022

CONTINGENCIES

NOTE 14 — CONTINGENCIES

Patent and Intellectual Property Claims

There were 64 patent infringement cases pending against Microsoft as of March 31, 2022, none of which are material individually or in aggregate.

Antitrust, Unfair Competition, and Overcharge Class Actions

Antitrust and unfair competition class action lawsuits were filed against us in British Columbia, Ontario, and Quebec, Canada. Following a mediation, the parties agreed to a global settlement of all three Canadian actions and submitted the proposed settlement agreement to the courts in all three jurisdictions for approval. The claim submission process has been completed, and settlement funds will be distributed in accordance with the agreement.

Other Antitrust Litigation and Claims

China State Administration for Market Regulation Investigation

In 2014, Microsoft was informed that China’s State Agency for Market Regulation (“SAMR”) (formerly State Administration for Industry and Commerce) had begun a formal investigation relating to China’s Anti-Monopoly Law, and the SAMR conducted onsite inspections of Microsoft offices in Beijing, Shanghai, Guangzhou, and Chengdu. In 2019, the SAMR presented preliminary views as to certain possible violations of China’s Anti-Monopoly Law.

Product-Related Litigation

U.S. Cell Phone Litigation

Microsoft Mobile Oy, a subsidiary of Microsoft, along with other handset manufacturers and network operators, is a defendant in 46 lawsuits, including 45 lawsuits filed in the Superior Court for the District of Columbia by individual plaintiffs who allege that radio emissions from cellular handsets caused their brain tumors and other adverse health effects. We assumed responsibility for these claims in our agreement to acquire Nokia’s Devices and Services business and have been substituted for the Nokia defendants. Nine of these cases were filed in 2002 and are consolidated for certain pre-trial proceedings; the remaining cases are stayed. In a separate 2009 decision, the Court of Appeals for the District of Columbia held that adverse health effect claims arising from the use of cellular handsets that operate within the U.S. Federal Communications Commission radio frequency emission guidelines (“FCC Guidelines”) are pre-empted by federal law. The plaintiffs allege that their handsets either operated outside the FCC Guidelines or were manufactured before the FCC Guidelines went into effect. The lawsuits also allege an industry-wide conspiracy to manipulate the science and testing around emission guidelines.

In 2013, the defendants in the consolidated cases moved to exclude the plaintiffs’ expert evidence of general causation on the basis of flawed scientific methodologies. In 2014, the trial court granted in part and denied in part the defendants’ motion to exclude the plaintiffs’ general causation experts. The defendants filed an interlocutory appeal to the District of Columbia Court of Appeals challenging the standard for evaluating expert scientific evidence. In October 2016, the Court of Appeals issued its decision adopting the standard advocated by the defendants and remanding the cases to the trial court for further proceedings under that standard. The plaintiffs have filed supplemental expert evidence, portions of which the defendants have moved to strike. In August 2018, the trial court issued an order striking portions of the plaintiffs’ expert reports. A hearing on general causation is scheduled for September of 2022.

Other Contingencies

We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against us, individually or in aggregate, will not have a material adverse impact in our consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.

As of March 31, 2022, we accrued aggregate legal liabilities of $391 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $600 million in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact in our consolidated financial statements for the period in which the effects become reasonably estimable.

Debt Investment Maturities (Detail) $ in Millions	Mar. 31, 2022 USD ($)
Adjusted Cost Basis
Due in one year or less	$ 20,401
Due after one year through five years	56,463
Due after five years through 10 years	18,807
Due after 10 years	1,377
Debt investments, Adjusted Cost Basis	97,048
Estimated Fair Value
Due in one year or less	20,496
Due after one year through five years	56,076
Due after five years through 10 years	18,049
Due after 10 years	1,349
Total	$ 95,970

Components of Lease Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease cost	$ 744	$ 553	$ 1,801	$ 1,554
Finance lease cost:
Amortization of right-of-use assets	289	211	779	666
Interest on lease liabilities	109	100	320	286
Total finance lease cost	$ 398	$ 311	$ 1,099	$ 952

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Other Income And Expenses [Abstract]
Interest and dividends income	$ 519	$ 519	$ 1,542	$ 1,634
Interest expense	(503)	(633)	(1,567)	(1,793)
Net recognized gains (losses) on investments	(76)	353	595	837
Net losses on derivatives	(29)	(2)	(29)	(4)
Net gains (losses) on foreign currency remeasurements	(74)	(55)	(152)	126
Other, net	(11)	6	(9)	76
Total	$ (174)	$ 188	$ 380	$ 876

INVESTMENTS

9 Months Ended

Mar. 31, 2022

Investments Debt And Equity Securities [Abstract]

INVESTMENTS

NOTE 4 — INVESTMENTS

Investment Components

The components of investments were as follows:

(In millions)	Fair Value Level	Adjusted Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity Investments


March 31, 2022

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	883	$	0	$	0		$	883	$	802	$	81	$	0
Certificates of deposit	Level 2		3,045		0		0			3,045		3,003		42		0
U.S. government securities	Level 1		79,211		347		(1,174	)		78,384		3		78,381		0
U.S. agency securities	Level 2		417		0		(6	)		411		0		411		0
Foreign government bonds	Level 2		508		3		(10	)		501		0		501		0
Mortgage- and asset-backed securities	Level 2		602		2		(14	)		590		0		590		0
Corporate notes and bonds	Level 2		11,910		31		(277	)		11,664		0		11,664		0
Corporate notes and bonds	Level 3		45		0		0			45		0		45		0
Municipal securities	Level 2		324		34		(7	)		351		0		351		0
Municipal securities	Level 3		103		0		(7	)		96		0		96		0


Total debt investments		$	97,048	$	417	$	(1,495	)	$	95,970	$	3,808	$	92,162	$	0


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	1,857	$	1,234	$	0	$	623
Equity investments	Other									6,284		0		0		6,284


Total equity investments									$	8,141	$	1,234	$	0	$	6,907


Cash									$	7,456	$	7,456	$	0	$	0
Derivatives, net^(a)										33		0		33		0


Total									$	111,600	$	12,498	$	92,195	$	6,907

(In millions)	Fair Value Level	Adjusted Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity Investments


June 30, 2021

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	4,316	$	0	$	0		$	4,316	$	1,331	$	2,985	$	0
Certificates of deposit	Level 2		3,615		0		0			3,615		2,920		695		0
U.S. government securities	Level 1		90,664		3,832		(111	)		94,385		1,500		92,885		0
U.S. agency securities	Level 2		807		2		0			809		0		809		0
Foreign government bonds	Level 2		6,213		9		(2	)		6,220		225		5,995		0
Mortgage- and asset-backed securities	Level 2		3,442		22		(6	)		3,458		0		3,458		0
Corporate notes and bonds	Level 2		8,443		249		(9	)		8,683		0		8,683		0
Corporate notes and bonds	Level 3		63		0		0			63		0		63		0
Municipal securities	Level 2		308		63		0			371		0		371		0
Municipal securities	Level 3		95		0		(7	)		88		0		88		0


Total debt investments		$	117,966	$	4,177	$	(135	)	$	122,008	$	5,976	$	116,032	$	0


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	1,582	$	976	$	0	$	606
Equity investments	Other									5,378		0		0		5,378


Total equity investments									$	6,960	$	976	$	0	$	5,984


Cash									$	7,272	$	7,272	$	0	$	0
Derivatives, net^(a)										78		0		78		0


Total									$	136,318	$	14,224	$	116,110	$	5,984

(a)	Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments.

Equity investments presented as “Other” in the tables above include investments without readily determinable fair values measured using the equity method or measured at cost with adjustments for observable changes in price or impairments, and investments measured at fair value using net asset value as a practical expedient which are not categorized in the fair value hierarchy. As of March 31, 2022 and June 30, 2021, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $3.8 billion and $3.3 billion, respectively.

Unrealized Losses on Debt Investments

Debt investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:

	Less than 12 Months					12 Months or Greater								Total Unrealized Losses


(In millions)		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


March 31, 2022

U.S. government and agency securities	$	35,798	$	(918	)	$	2,308	$	(262	)	$	38,106	$	(1,180	)
Foreign government bonds		419		(6	)		30		(4	)		449		(10	)
Mortgage- and asset-backed securities		450		(13	)		33		(1	)		483		(14	)
Corporate notes and bonds		8,133		(241	)		461		(36	)		8,594		(277	)
Municipal securities		125		(7	)		57		(7	)		182		(14	)


Total	$	44,925	$	(1,185	)	$	2,889	$	(310	)	$	47,814	$	(1,495	)

	Less than 12 Months					12 Months or Greater								Total Unrealized Losses


(In millions)		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


June 30, 2021

U.S. government and agency securities	$	5,294	$	(111	)	$	0	$	0		$	5,294	$	(111	)
Foreign government bonds		3,148		(1	)		5		(1	)		3,153		(2	)
Mortgage- and asset-backed securities		1,211		(5	)		87		(1	)		1,298		(6	)
Corporate notes and bonds		1,678		(8	)		34		(1	)		1,712		(9	)
Municipal securities		58		(7	)		1		0			59		(7	)


Total	$	11,389	$	(132	)	$	127	$	(3	)	$	11,516	$	(135	)

Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Management does not believe any remaining unrealized losses represent impairments based on our evaluation of available evidence.

Debt Investment Maturities

(In millions)	Adjusted Cost Basis		Estimated Fair Value


March 31, 2022

Due in one year or less	$	20,401	$	20,496
Due after one year through five years		56,463		56,076
Due after five years through 10 years		18,807		18,049
Due after 10 years		1,377		1,349


Total	$	97,048	$	95,970

Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 1,369	$ 1,190
Work in process	87	79
Finished goods	1,840	1,367
Total	$ 3,296	$ 2,636

Acquired Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 09, 2021	Mar. 04, 2022
Nuance Communications Inc.
Acquired Finite Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 4,340		$ 4,340
Weighted Average Life	7 years
Nuance Communications Inc. \| Customer-related
Acquired Finite Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2,560
Weighted Average Life	9 years
Nuance Communications Inc. \| Technology-based
Acquired Finite Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 1,560
Weighted Average Life	4 years
Nuance Communications Inc. \| Marketing-related
Acquired Finite Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 220
Weighted Average Life	4 years
ZeniMax Media Inc.
Acquired Finite Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired		$ 1,968
Weighted Average Life		6 years
ZeniMax Media Inc. \| Technology-based
Acquired Finite Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired		$ 1,341
Weighted Average Life		4 years
ZeniMax Media Inc. \| Marketing-related
Acquired Finite Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired		$ 627
Weighted Average Life		11 years

Revenue Classified by Major Geographic Areas (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Mar. 31, 2022

Mar. 31, 2021

Revenues From External Customers And Long Lived Assets [Line Items]

Revenue

$ 49,360

$ 41,706

$ 146,405

$ 121,936

United States

Revenues From External Customers And Long Lived Assets [Line Items]

Revenue

^[1]

24,771

20,373

74,064

61,234

Other Countries

Revenues From External Customers And Long Lived Assets [Line Items]

Revenue

$ 24,589

$ 21,333

$ 72,341

$ 60,702

[1]	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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DEBT

9 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

DEBT

NOTE 10 — DEBT

The components of debt were as follows:

(In millions, issuance by calendar year)	Maturities (calendar year)				Stated Interest Rate				Effective Interest Rate			March 31, 2022			June 30, 2021


2009 issuance of $3.8 billion ^(a)				2039				5.20%			5.24%	$	520		$	520
2010 issuance of $4.8 billion ^(a)				2040				4.50%			4.57%		486			486
2011 issuance of $2.3 billion ^(a)				2041				5.30%			5.36%		718			718
2012 issuance of $2.3 billion ^(a)		2022	–	2042		2.13%	–	3.50%	2.24%	–	3.57%		1,204			1,204
2013 issuance of $5.2 billion ^(a)		2023	–	2043		2.38%	–	4.88%	2.47%	–	4.92%		2,814			2,814
2013 issuance of €4.1 billion		2028	–	2033		2.63%	–	3.13%	2.69%	–	3.22%		2,559			4,803
2015 issuance of $23.8 billion ^(a)		2022	–	2055		2.65%	–	4.75%	2.72%	–	4.78%		10,805			12,305
2016 issuance of $19.8 billion ^(a)		2023	–	2056		2.00%	–	3.95%	2.10%	–	4.03%		9,430			12,180
2017 issuance of $17.0 billion ^(a)		2024	–	2057		2.88%	–	4.50%	3.04%	–	4.53%		8,945			10,695
2020 issuance of $10.0 billion ^(a)		2050	–	2060		2.53%	–	2.68%	2.53%	–	2.68%		10,000			10,000
2021 issuance of $8.2 billion ^(a)		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%		8,185			8,185


Total face value													55,666			63,910
Unamortized discount and issuance costs													(481	)		(511	)
Hedge fair value adjustments ^(b)													(43	)		40
Premium on debt exchange ^(a)													(5,216	)		(5,293	)


Total debt													49,926			58,146
Current portion of long-term debt													(1,749	)		(8,072	)


Long-term debt												$	48,177		$	50,074

(a)	In March 2021 and June 2020, we exchanged a portion of our existing debt at a premium for cash and new debt with longer maturities. The premiums are amortized over the terms of the new debt.

(b)	Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.

As of March 31, 2022 and June 30, 2021, the estimated fair value of long-term debt, including the current portion, was $55.9 billion and $70.0 billion, respectively. The estimated fair values are based on Level 2 inputs.

Debt in the table above is comprised of senior unsecured obligations and ranks equally with our other outstanding obligations. Interest is paid semi-annually, except for the Euro-denominated debt, which is paid annually.

The following table outlines maturities of our long-term debt, including the current portion, as of March 31, 2022:

(In millions)


Year Ending June 30,

2022 (excluding the nine months ended March 31, 2022)	$	0
2023		2,750
2024		5,250
2025		2,250
2026		3,000
Thereafter		42,416


Total	$	55,666

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Cash, Cash Equivalents and Investments [Line Items]

Changes in Unearned Revenue (Detail) $ in Millions	9 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions	Mar. 31, 2022 USD ($)
Revenue From Contract With Customer [Abstract]
Balance, beginning of period	$ 44,141
Deferral of revenue	70,939
Recognition of unearned revenue	(78,284)
Balance, end of period	$ 36,796

Contingencies - Additional Information (Detail) $ in Millions	Mar. 31, 2022 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Accrual for disclosed loss contingencies, current, ending balance	$ 391
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 600

Investment Components (Detail) - USD ($)
$ in Millions

Mar. 31, 2022

Jun. 30, 2021

$ 97,048

95,970

Derivative, net

155

$ 258

12,498

14,224

92,195

116,110

Cash, cash equivalents, and investments

6,907

5,984

111,600

136,318

Equity investments

Cash, Cash Equivalents and Investments [Line Items]

Equity investments, Recorded Basis

8,141

6,960

1,234

976

Equity investments | Other

6,907

5,984

Cash, Cash Equivalents and Investments [Line Items]

Equity investments, Recorded Basis

6,284

5,378

Equity investments | Level 1

6,284

5,378

Cash, Cash Equivalents and Investments [Line Items]

Equity investments, Recorded Basis

1,857

1,582

1,234

976

Cash, Cash Equivalents and Investments [Line Items]

623

606

Cash

Cash

7,456

7,272

7,456

7,272

Cash, Cash Equivalents and Investments [Line Items]

Derivatives, net

Derivative, net

^[1]

^[1]

^[1]

Cash, Cash Equivalents and Investments [Line Items]

^[1]

Debt investments

97,048

117,966

417

4,177

(1,495)

(135)

95,970

122,008

3,808

5,976

92,162

116,032

Debt investments | Commercial Paper | Level 2

Cash, Cash Equivalents and Investments [Line Items]

883

4,316

883

4,316

802

1,331

2,985

Debt investments | Certificates of deposit | Level 2

Cash, Cash Equivalents and Investments [Line Items]

3,045

3,615

3,045

3,615

3,003

2,920

695

Debt investments | U.S. government securities | Level 1

Cash, Cash Equivalents and Investments [Line Items]

79,211

90,664

347

3,832

(1,174)

(111)

78,384

94,385

1,500

78,381

92,885

Debt investments | U.S. agency securities | Level 2

Cash, Cash Equivalents and Investments [Line Items]

417

807

(6)

411

809

411

809

Debt investments | Foreign government bonds | Level 2

Cash, Cash Equivalents and Investments [Line Items]

508

6,213

(10)

(2)

501

6,220

225

501

5,995

Debt investments | Mortgage- and asset-backed securities | Level 2

Cash, Cash Equivalents and Investments [Line Items]

602

3,442

(14)

(6)

590

3,458

590

3,458

Debt investments | Corporate notes and bonds | Level 2

Cash, Cash Equivalents and Investments [Line Items]

11,910

8,443

249

(277)

(9)

11,664

8,683

11,664

8,683

Debt investments | Corporate notes and bonds | Level 3

Cash, Cash Equivalents and Investments [Line Items]

Debt investments | Municipal securities | Level 2

Cash, Cash Equivalents and Investments [Line Items]

324

308

(7)

351

371

351

371

Debt investments | Municipal securities | Level 3

Cash, Cash Equivalents and Investments [Line Items]

103

(7)

Goodwill And Intangible Assets Disclosure [Abstract]

$ 0

[1]	Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments.

GOODWILL (Tables)

9 Months Ended

Mar. 31, 2022

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2021		Acquisitions			Other			March 31, 2022


Productivity and Business Processes	$	24,317	$	599		$	(9	)	$	24,907
Intelligent Cloud		13,256		16,879	^(a)		83			30,218
More Personal Computing		12,138		224			(116	)		12,246


Total	$	49,711	$	17,702		$	(42	)	$	67,371

(a)	Includes goodwill of $16.3 billion related to Nuance. See Note 7 – Business Combinations for further information.

ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Accounting Principles

Principles of Consolidation

The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated.

Estimates and Assumptions

Investments

Derivatives

For derivative instruments that are not designated as hedges, gains and losses from changes in fair values are primarily recognized in other income (expense), net.

Fair Value Measurements

•

Our other current financial assets and current financial liabilities have fair values that approximate their carrying values.

Contract Balances and Other Receivables

Recent Accounting Guidance

Accounting for Income Taxes

Earnings Per Share

Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

Segment Reporting

Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Net realized gains (losses) on investments sold	$ (22)	$ 43	$ 46	$ 76
Net unrealized gains (losses) on investments still held	(34)	299	559	725
Total	(76)	353	595	837
Equity Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Impairments of investments	(5)	0	(5)	(11)
Total	$ (61)	$ 342	$ 600	$ 790

Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 44,925	$ 11,389
Less than 12 Months - Unrealized Losses	(1,185)	(132)
12 Months or Greater - Fair Value	2,889	127
12 Months or Greater - Unrealized Losses	(310)	(3)
Total Fair Value	47,814	11,516
Total Unrealized Losses	(1,495)	(135)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	35,798	5,294
Less than 12 Months - Unrealized Losses	(918)	(111)
12 Months or Greater - Fair Value	2,308	0
12 Months or Greater - Unrealized Losses	(262)	0
Total Fair Value	38,106	5,294
Total Unrealized Losses	(1,180)	(111)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	419	3,148
Less than 12 Months - Unrealized Losses	(6)	(1)
12 Months or Greater - Fair Value	30	5
12 Months or Greater - Unrealized Losses	(4)	(1)
Total Fair Value	449	3,153
Total Unrealized Losses	(10)	(2)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	450	1,211
Less than 12 Months - Unrealized Losses	(13)	(5)
12 Months or Greater - Fair Value	33	87
12 Months or Greater - Unrealized Losses	(1)	(1)
Total Fair Value	483	1,298
Total Unrealized Losses	(14)	(6)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	8,133	1,678
Less than 12 Months - Unrealized Losses	(241)	(8)
12 Months or Greater - Fair Value	461	34
12 Months or Greater - Unrealized Losses	(36)	(1)
Total Fair Value	8,594	1,712
Total Unrealized Losses	(277)	(9)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	125	58
Less than 12 Months - Unrealized Losses	(7)	(7)
12 Months or Greater - Fair Value	57	1
12 Months or Greater - Unrealized Losses	(7)	0
Total Fair Value	182	59
Total Unrealized Losses	$ (14)	$ (7)

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Derivatives Fair Value [Line Items]
Derivative Assets	$ 330	$ 399
Gross amounts of derivatives offset in the balance sheet, assets	(175)	(141)
Cash collateral received, assets	0	0
Net amounts of derivatives, assets	155	258
Derivative Liabilities	(429)	(335)
Gross amounts of derivatives offset in the balance sheet, liabilities	177	142
Cash collateral received, liabilities	(175)	(42)
Net amounts of derivatives, liabilities	(427)	(235)
Level 1
Derivatives Fair Value [Line Items]
Derivative Assets	0	0
Derivative Liabilities	0	0
Level 2
Derivatives Fair Value [Line Items]
Derivative Assets	314	396
Derivative Liabilities	(429)	(335)
Level 3
Derivatives Fair Value [Line Items]
Derivative Assets	16	3
Derivative Liabilities	0	0
Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	0	76
Derivative Liabilities	(39)	(8)
Designated as Hedging Instruments \| Interest Rate Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	0	40
Derivative Liabilities	(43)	0
Not Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	234	227
Derivative Liabilities	(322)	(291)
Not Designated as Hedging Instruments \| Other Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	96	56
Derivative Liabilities	(25)	(36)
Short-term Investments
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	33	78
Other Current Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	167	137
Other Long-term Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	(45)	43
Other Current Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	(311)	(182)
Other Long-term Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	$ (116)	$ (53)

INVENTORIES (Tables)

9 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Components of Inventories

The components of inventories were as follows:

(In millions)


	March 31, 2022		June 30, 2021

Raw materials	$	1,369	$	1,190
Work in process		87		79
Finished goods		1,840		1,367


Total	$	3,296	$	2,636

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Accounting Policies [Abstract]
Other receivables due from suppliers	$ 1,000	$ 965
Long-term accounts receivable, net of allowance for doubtful accounts	3,600	3,400
Financing receivables, net	$ 2,400	$ 4,400

Maturities of Long-term Debt Including Current Portion (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Debt Disclosure [Abstract]
Year Ending June 30, 2022 (excluding the nine months ended March 31, 2022)	$ 0
Year Ending June 30, 2023	2,750
Year Ending June 30, 2024	5,250
Year Ending June 30, 2025	2,250
Year Ending June 30, 2026	3,000
Thereafter	42,416
Total	$ 55,666	$ 63,910

Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 726	$ 533	$ 1,733	$ 1,506
Operating cash flows from finance leases	109	100	320	286
Financing cash flows from finance leases	233	168	655	457
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,421	1,106	4,151	3,362
Finance leases	$ 720	$ 836	$ 3,094	$ 2,664

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 505	$ 751
Property and equipment, accumulated depreciation	$ 58,053	$ 51,351
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,483,000,000	7,519,000,000

INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 9 — INTANGIBLE ASSETS

The components of intangible assets, all of which are finite-lived, were as follows:

(In millions)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount


	March 31, 2022								June 30, 2021

Technology-based	$	11,570		$	(7,346	)	$	4,224	$	9,779	$	(7,007	)	$	2,772
Customer-related		7,578			(3,366	)		4,212		4,958		(2,859	)		2,099
Marketing-related		5,033			(2,131	)		2,902		4,792		(1,878	)		2,914
Contract-based		343			(333	)		10		446		(431	)		15


Total	$	24,524	^(a)	$	(13,176	)	$	11,348	$	19,975	$	(12,175	)	$	7,800

(a)	Includes intangible assets of $4.3 billion related to Nuance. See Note 7 – Business Combinations for further information.

Intangible assets amortization expense was $502 million and $1.4 billion for the three and nine months ended March 31, 2022, respectively, and $405 million and $1.2 billion for the three and nine months ended March 31, 2021, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2022:

(In millions)


Year Ending June 30,

2022 (excluding the nine months ended March 31, 2022)	$	618
2023		2,579
2024		2,275
2025		1,551
2026		1,110
Thereafter		3,215


Total	$	11,348

OTHER INCOME (EXPENSE), NET (Tables)

9 Months Ended

Mar. 31, 2022

Components of Other Income (Expense), Net

The components of other income (expense), net were as follows:

(In millions)		Three Months Ended March 31,						Nine Months Ended March 31,


	2022			2021				2022			2021

Interest and dividends income	$	519		$	519		$	1,542		$	1,634
Interest expense		(503	)		(633	)		(1,567	)		(1,793	)
Net recognized gains (losses) on investments		(76	)		353			595			837
Net losses on derivatives		(29	)		(2	)		(29	)		(4	)
Net gains (losses) on foreign currency remeasurements		(74	)		(55	)		(152	)		126
Other, net		(11	)		6			(9	)		76


Total	$	(174	)	$	188		$	380		$	876

Debt Securities

Net Recognized Gains (Losses) on Investments

Net recognized gains (losses) on debt investments were as follows:

(In millions)		Three Months Ended March 31,						Nine Months Ended March 31,


	2022			2021				2022			2021

Realized gains from sales of available-for-sale securities	$	119		$	33		$	150		$	84
Realized losses from sales of available-for-sale securities		(89	)		(12	)		(102	)		(30	)
Impairments and allowance for credit losses		(45	)		(10	)		(53	)		(7	)


Total	$	(15	)	$	11		$	(5	)	$	47

Equity Securities

Net Recognized Gains (Losses) on Investments

Net recognized gains (losses) on equity investments were as follows:

(In millions)		Three Months Ended March 31,					Nine Months Ended March 31,


	2022			2021			2022			2021

Net realized gains (losses) on investments sold	$	(22	)	$	43	$	46		$	76
Net unrealized gains (losses) on investments still held		(34	)		299		559			725
Impairments of investments		(5	)		0		(5	)		(11	)


Total	$	(61	)	$	342	$	600		$	790

Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Realized gains from sales of available-for-sale securities	$ 119	$ 33	$ 150	$ 84
Realized losses from sales of available-for-sale securities	(89)	(12)	(102)	(30)
Total	(76)	353	595	837
Debt Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Impairments and allowance for credit losses	(45)	(10)	(53)	(7)
Total	$ (15)	$ 11	$ (5)	$ 47

Revenue Classified by Significant Product and Service Offerings (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Revenue from External Customer [Line Items]
Revenue	$ 49,360	$ 41,706	$ 146,405	$ 121,936
Server Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	17,038	13,204	48,482	37,128
Office Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	11,164	10,016	33,223	29,175
Windows
Revenue from External Customer [Line Items]
Revenue	6,077	5,463	18,353	16,128
Gaming
Revenue from External Customer [Line Items]
Revenue	3,740	3,533	12,775	11,656
LinkedIn
Revenue from External Customer [Line Items]
Revenue	3,437	2,562	10,104	7,345
Search and News Advertising
Revenue from External Customer [Line Items]
Revenue	2,945	2,401	8,665	6,730
Enterprise Services
Revenue from External Customer [Line Items]
Revenue	1,891	1,803	5,505	5,135
Devices
Revenue from External Customer [Line Items]
Revenue	1,764	1,599	5,410	5,339
Other
Revenue from External Customer [Line Items]
Revenue	$ 1,304	$ 1,125	$ 3,888	$ 3,300

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Revenue from External Customer [Line Items]
Revenue	$ 49,360	$ 41,706	$ 146,405	$ 121,936
Microsoft Cloud
Revenue from External Customer [Line Items]
Revenue	$ 23,400	$ 17,700	$ 66,200	$ 49,600

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period			$ 141,988
Accounting Standards Update [Extensible Enumeration]	us-gaap:AccountingStandardsUpdate201601Member	us-gaap:AccountingStandardsUpdate201601Member	us-gaap:AccountingStandardsUpdate201601Member	us-gaap:AccountingStandardsUpdate201601Member
Other comprehensive income (loss)	$ (2,913)	$ (1,905)	$ (4,298)	$ (1,734)
Balance, end of period	162,924	134,505	162,924	134,505
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(17)	(26)	(19)	(38)
Unrealized gains (losses), net of tax	(6)	(2)	(27)	43
Tax expense (benefit) included in provision for income taxes	(3)	(6)	(9)	2
Amounts reclassified from accumulated other comprehensive income (loss)	12	20	35	(13)
Other comprehensive income (loss)	6	18	8	30
Balance, end of period	(11)	(8)	(11)	(8)
Derivatives \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net	15	26	44	(15)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	2,057	4,795	3,222	5,478
Unrealized gains (losses), net of tax	(2,894)	(1,696)	(4,051)	(2,361)
Tax expense (benefit) included in provision for income taxes	(3)	2	(1)	10
Amounts reclassified from accumulated other comprehensive income (loss)	12	(9)	4	(37)
Other comprehensive income (loss)	(2,882)	(1,705)	(4,047)	(2,398)
Balance, end of period	(825)	3,090	(825)	3,090
Investments \| Cumulative effect of accounting changes
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	0	0	0	10
Investments \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net	15	(11)	5	(47)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(1,603)	(1,402)	(1,381)	(2,254)
Other comprehensive income (loss)	(37)	(218)	(259)	634
Balance, end of period	(1,640)	(1,620)	(1,640)	(1,620)
Accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	437	3,367	1,822	3,186
Other comprehensive income (loss)	(2,913)	(1,905)	(4,298)	(1,734)
Balance, end of period	(2,476)	1,462	(2,476)	1,462
Accumulated other comprehensive income \| Cumulative effect of accounting changes
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 0	$ 0	$ 0	$ 10

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Operating Leases
Operating lease right-of-use assets	$ 12,916	$ 11,088
Total operating lease liabilities	13,516	11,591
Finance Leases
Accumulated depreciation	(58,053)	(51,351)
Property and equipment, net	70,298	59,715
Total finance lease liabilities	$ 14,539	$ 12,541
Weighted Average Remaining Lease Term
Operating leases	8 years	8 years
Finance leases	12 years	12 years
Weighted Average Discount Rate
Operating leases	2.00%	2.20%
Finance leases	3.10%	3.40%
Finance Lease
Finance Leases
Property and equipment, at cost	$ 16,803	$ 14,107
Accumulated depreciation	(3,084)	(2,306)
Property and equipment, net	13,719	11,801
Other Current Liabilities
Operating Leases
Total operating lease liabilities	2,159	1,962
Finance Leases
Total finance lease liabilities	988	791
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	11,357	9,629
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities	$ 13,551	$ 11,750

Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Sep. 14, 2021	Sep. 18, 2019
Share Repurchases [Line Items]
Amount of shares repurchased to settle employee tax withholding related to vesting of stock awards	$ 1,000,000,000.0	$ 1,100,000,000	$ 3,700,000,000	$ 3,400,000,000
Share Repurchase Program 2019
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors						$ 40,000,000,000.0
Share Repurchase Program 2021
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors					$ 60,000,000,000.0
Unused amount of share repurchase program	$ 48,500,000,000		$ 48,500,000,000

LEASES

9 Months Ended

Mar. 31, 2022

Leases [Abstract]

LEASES

NOTE 13 — LEASES

We have operating and finance leases for datacenters, corporate offices, research and development facilities, Microsoft Experience Centers, and certain equipment. Our leases have remaining lease terms of 1 year to 19 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows:

(In millions)		Three Months Ended March 31,				Nine Months Ended March 31,


		2022		2021		2022		2021

Operating lease cost	$	744	$	553	$	1,801	$	1,554


Finance lease cost:
Amortization of right-of-use assets	$	289	$	211	$	779	$	666
Interest on lease liabilities		109		100		320		286


Total finance lease cost	$	398	$	311	$	1,099	$	952

Supplemental cash flow information related to leases was as follows:

(In millions)	Three Months Ended March 31,					Nine Months Ended March 31,


		2022		2021		2022		2021

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	726	$	533	$	1,733	$	1,506
Operating cash flows from finance leases		109		100		320		286
Financing cash flows from finance leases		233		168		655		457

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,421		1,106		4,151		3,362
Finance leases		720		836		3,094		2,664

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)


	March 31, 2022			June 30, 2021

Operating Leases

Operating lease right-of-use assets	$	12,916		$	11,088


Other current liabilities	$	2,159		$	1,962
Operating lease liabilities		11,357			9,629


Total operating lease liabilities	$	13,516		$	11,591


Finance Leases

Property and equipment, at cost	$	16,803		$	14,107
Accumulated depreciation		(3,084	)		(2,306	)


Property and equipment, net	$	13,719		$	11,801


Other current liabilities	$	988		$	791
Other long-term liabilities		13,551			11,750


Total finance lease liabilities	$	14,539		$	12,541


Weighted Average Remaining Lease Term

Operating leases		8 years			8 years
Finance leases		12 years			12 years

Weighted Average Discount Rate

Operating leases		2.0%			2.2%
Finance leases		3.1%			3.4%

The following table outlines maturities of our lease liabilities as of March 31, 2022:

(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2022 (excluding the nine months ended March 31, 2022)	$	601		$	346
2023		2,335			1,404
2024		2,160			1,420
2025		1,885			1,749
2026		1,531			1,435
Thereafter		6,074			10,928


Total lease payments		14,586			17,282
Less imputed interest		(1,070	)		(2,743	)


Total	$	13,516		$	14,539

As of March 31, 2022, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $5.7 billion and $5.9 billion, respectively. These operating and finance leases will commence between fiscal year 2022 and fiscal year 2027 with lease terms of 1 year to 17 years.

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 20,364	$ 17,048	$ 62,849	$ 50,821
Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating Income (Loss)	7,184	6,029	22,453	17,916
Intelligent Cloud
Segment Reporting Information [Line Items]
Operating Income (Loss)	8,281	6,425	24,040	18,339
More Personal Computing
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 4,899	$ 4,594	$ 16,356	$ 14,566

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Mar. 31, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Share Repurchases

We repurchased the following shares of common stock under the share repurchase programs:

(In millions)	Shares		Amount			Shares		Amount


Fiscal Year				2022					2021

First Quarter		21		$	6,200		25		$	5,270
Second Quarter		20			6,233		27			5,750
Third Quarter		26			7,800		25			5,750


Total		67		$	20,233		77		$	16,770

Dividends Declared

Our Board of Directors declared the following dividends:

Declaration Date	Record Date	Payment Date		Dividend Per Share		Amount


Fiscal Year 2022						(In millions)

September 14, 2021	November 18, 2021	December 9, 2021	$	0.62	$	4,652
December 7, 2021	February 17, 2022	March 10, 2022		0.62		4,645
March 14, 2022	May 19, 2022	June 9, 2022		0.62		4,639


Total			$	1.86	$	13,936


Fiscal Year 2021

September 15, 2020	November 19, 2020	December 10, 2020	$	0.56	$	4,230
December 2, 2020	February 18, 2021	March 11, 2021		0.56		4,221
March 16, 2021	May 20, 2021	June 10, 2021		0.56		4,214


Total			$	1.68	$	12,665

Unearned Revenue - Additional Information (Detail) $ in Billions	Mar. 31, 2022 USD ($)
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 160
Commercial Customers
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 155

DERIVATIVES

9 Months Ended

Mar. 31, 2022

DERIVATIVES

NOTE 5 — DERIVATIVES

We use derivative instruments to manage risks related to foreign currencies, interest rates, equity prices, and credit; to enhance investment returns; and to facilitate portfolio diversification. Our objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible. Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment.

Foreign Currencies

Certain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency exposures daily to maximize the economic effectiveness of our foreign currency hedge positions.

Foreign currency risks related to certain non-U.S. dollar-denominated investments are hedged using foreign exchange forward contracts that are designated as fair value hedging instruments. Foreign currency risks related to certain Euro-denominated debt are hedged using foreign exchange forward contracts that are designated as cash flow hedging instruments.

Certain options and forwards not designated as hedging instruments are also used to manage the variability in foreign exchange rates on certain balance sheet amounts and to manage other foreign currency exposures.

Interest Rate

Interest rate risks related to certain fixed-rate debt are hedged using interest rate swaps that are designated as fair value hedging instruments to effectively convert the fixed interest rates to floating interest rates.

Securities held in our fixed-income portfolio are subject to different interest rate risks based on their maturities. We manage the average maturity of our fixed-income portfolio to achieve economic returns that correlate to certain broad-based fixed-income indices using exchange-traded option and futures contracts and over-the-counter swap and option contracts. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below.

Equity

Securities held in our equity investments portfolio are subject to market price risk. At times, we may hold options, futures, and swap contracts. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below.

Credit

Our fixed-income portfolio is diversified and consists primarily of investment-grade securities. We use credit default swap contracts to manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below.

Credit-Risk-Related Contingent Features

Certain of our counterparty agreements for derivative instruments contain provisions that require our issued and outstanding long-term unsecured debt to maintain an investment grade credit rating and require us to maintain minimum liquidity of $1.0 billion. To the extent we fail to meet these requirements, we will be required to post collateral, similar to the standard convention related to over-the-counter derivatives. As of March 31, 2022, our long-term unsecured debt rating was AAA, and cash investments were in excess of $1.0 billion. As a result, no collateral was required to be posted.

The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents:

(In millions)	March 31, 2022		June 30, 2021


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	635	$	635
Foreign exchange contracts sold		0		6,081
Interest rate contracts purchased		1,160		1,247

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		8,151		14,223
Foreign exchange contracts sold		13,929		23,391
Other contracts purchased		2,757		2,456
Other contracts sold		869		763

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative				Derivative		Derivative			Derivative
(In millions)	Assets				Liabilities		Assets			Liabilities


	March 31, 2022						June 30, 2021

Designated as Hedging Instruments

Foreign exchange contracts	$	0		$	(39	)	$	76		$	(8	)
Interest rate contracts		0			(43	)		40			0

Not Designated as Hedging Instruments

Foreign exchange contracts		234			(322	)		227			(291	)
Other contracts		96			(25	)		56			(36	)


Gross amounts of derivatives		330			(429	)		399			(335	)
Gross amounts of derivatives offset in the balance sheet		(175	)		177			(141	)		142
Cash collateral received		0			(175	)		0			(42	)


Net amounts of derivatives	$	155		$	(427	)	$	258		$	(235	)


Reported as

Short-term investments	$	33		$	0		$	78		$	0
Other current assets		167			0			137			0
Other long-term assets		(45	)		0			43			0
Other current liabilities		0			(311	)		0			(182	)
Other long-term liabilities		0			(116	)		0			(53	)


Total	$	155		$	(427	)	$	258		$	(235	)

Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $314 million and $426 million, respectively, as of March 31, 2022, and $395 million and $335 million, respectively, as of June 30, 2021.

The following table presents the fair value of our derivatives instruments on a gross basis:

(In millions)	Level 1			Level 2		Level 3		Total


March 31, 2022

Derivative assets	$	0	$	314		$	16	$	330
Derivative liabilities		0		(429	)		0		(429	)

June 30, 2021

Derivative assets		0		396			3		399
Derivative liabilities		0		(335	)		0		(335	)

Gains (losses) on derivative instruments recognized in other income (expense), net were as follows:

(In millions)	Three Months Ended March 31,							Nine Months Ended March 31,


		2022			2021			2022			2021

Designated as Fair Value Hedging Instruments

Foreign exchange contracts
Derivatives	$	0		$	482		$	49		$	189
Hedged items		0			(474	)		(50	)		(181	)
Excluded from effectiveness assessment		0			7			4			25

Interest rate contracts
Derivatives		(57	)		(41	)		(71	)		(50	)
Hedged items		61			46			83			62

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		(15	)		(26	)		(44	)		15

Not Designated as Hedging Instruments

Foreign exchange contracts		35			(130	)		308			67
Other contracts		(29	)		(17	)		(41	)		(10	)

Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows:

(In millions)	Three Months Ended March 31,							Nine Months Ended March 31,


	2022			2021				2022			2021

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	(6	)	$	(2	)	$	(27	)	$	43

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Jun. 30, 2021
Contract With Customer Liability [Line Items]
Unearned revenue	$ 36,796	$ 44,141
Productivity and Business Processes
Contract With Customer Liability [Line Items]
Unearned revenue	18,578	22,120
Intelligent Cloud
Contract With Customer Liability [Line Items]
Unearned revenue	14,524	17,710
More Personal Computing
Contract With Customer Liability [Line Items]
Unearned revenue	$ 3,694	$ 4,311

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 502	$ 405	$ 1,400	$ 1,200

Business Combinations - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Mar. 04, 2022	Jan. 18, 2022	Mar. 09, 2021
Nuance Communications Inc.
Business Acquisition [Line Items]
Acquisition agreement date	Mar. 04, 2022
Total consideration transferred	$ 18,800
ZeniMax Media Inc.
Business Acquisition [Line Items]
Total consideration transferred			$ 8,100
Cash and cash equivalents acquired			$ 766
Acquisition date			Mar. 09, 2021
Activision Blizzard, Inc.
Business Acquisition [Line Items]
Acquisition agreement date		Jan. 18, 2022
Acquisition agreement share price		$ 95.00
Total purchase price to be transferred		$ 68,700

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

9 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Revenue

Segment revenue and operating income were as follows during the periods presented:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


	2022		2021		2022		2021

Revenue

Productivity and Business Processes	$	15,789	$	13,552	$	46,764	$	39,224
Intelligent Cloud		19,051		15,118		54,342		42,705
More Personal Computing		14,520		13,036		45,299		40,007


Total	$	49,360	$	41,706	$	146,405	$	121,936


Operating Income

Productivity and Business Processes	$	7,184	$	6,029	$	22,453	$	17,916
Intelligent Cloud		8,281		6,425		24,040		18,339
More Personal Computing		4,899		4,594		16,356		14,566


Total	$	20,364	$	17,048	$	62,849	$	50,821

Segment Operating Income (Loss)

Segment revenue and operating income were as follows during the periods presented:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


	2022		2021		2022		2021

Revenue

Productivity and Business Processes	$	15,789	$	13,552	$	46,764	$	39,224
Intelligent Cloud		19,051		15,118		54,342		42,705
More Personal Computing		14,520		13,036		45,299		40,007


Total	$	49,360	$	41,706	$	146,405	$	121,936


Operating Income

Productivity and Business Processes	$	7,184	$	6,029	$	22,453	$	17,916
Intelligent Cloud		8,281		6,425		24,040		18,339
More Personal Computing		4,899		4,594		16,356		14,566


Total	$	20,364	$	17,048	$	62,849	$	50,821

Revenue Classified by Major Geographic Areas

Revenue, classified by the major geographic areas in which our customers were located, was as follows:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


	2022		2021		2022		2021

United States ^(a)	$	24,771	$	20,373	$	74,064	$	61,234
Other countries		24,589		21,333		72,341		60,702


Total	$	49,360	$	41,706	$	146,405	$	121,936

(a)	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Revenue Classified by Significant Product and Service Offerings

Revenue from external customers, classified by significant product and service offerings, was as follows:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


	2022		2021		2022		2021

Server products and cloud services	$	17,038	$	13,204	$	48,482	$	37,128
Office products and cloud services		11,164		10,016		33,223		29,175
Windows		6,077		5,463		18,353		16,128
Gaming		3,740		3,533		12,775		11,656
LinkedIn		3,437		2,562		10,104		7,345
Search and news advertising		2,945		2,401		8,665		6,730
Enterprise Services		1,891		1,803		5,505		5,135
Devices		1,764		1,599		5,410		5,339
Other		1,304		1,125		3,888		3,300


Total	$	49,360	$	41,706	$	146,405	$	121,936

We have recast certain previously reported amounts in the table above to conform to the way we internally manage and monitor our business.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Mar. 31, 2022

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 16 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component:

(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


		2022			2021			2022			2021

Derivatives

Balance, beginning of period	$	(17	)	$	(26	)	$	(19	)	$	(38	)
Unrealized gains (losses), net of tax of $(1), $0, $(7), and $12		(6	)		(2	)		(27	)		43

Reclassification adjustments for (gains) losses included in other income (expense), net		15			26			44			(15	)
Tax expense (benefit) included in provision for income taxes		(3	)		(6	)		(9	)		2


Amounts reclassified from accumulated other comprehensive income (loss)		12			20			35			(13	)


Net change related to derivatives, net of tax of $2, $6, $2, and $10		6			18			8			30


Balance, end of period	$	(11	)	$	(8	)	$	(11	)	$	(8	)


Investments

Balance, beginning of period	$	2,057		$	4,795		$	3,222		$	5,478
Unrealized losses, net of tax of $(769), $(451), $(1,076), and $(629)		(2,894	)		(1,696	)		(4,051	)		(2,361	)

Reclassification adjustments for (gains) losses included in other income (expense), net		15			(11	)		5			(47	)
Tax expense (benefit) included in provision for income taxes		(3	)		2			(1	)		10


Amounts reclassified from accumulated other comprehensive income (loss)		12			(9	)		4			(37	)


Net change related to investments, net of tax of $(766), $(453), $(1,075), and $(639)		(2,882	)		(1,705	)		(4,047	)		(2,398	)
Cumulative effect of accounting changes		0			0			0			10


Balance, end of period	$	(825	)	$	3,090		$	(825	)	$	3,090


Translation Adjustments and Other

Balance, beginning of period	$	(1,603	)	$	(1,402	)	$	(1,381	)	$	(2,254	)
Translation adjustments and other, net of tax of $0, $0, $0, and $(9)		(37	)		(218	)		(259	)		634


Balance, end of period	$	(1,640	)	$	(1,620	)	$	(1,640	)	$	(1,620	)


Accumulated other comprehensive income (loss), end of period	$	(2,476	)	$	1,462		$	(2,476	)	$	1,462

UNEARNED REVENUE

9 Months Ended

Mar. 31, 2022

Revenue From Contract With Customer [Abstract]

UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)


	March 31, 2022		June 30, 2021

Productivity and Business Processes	$	18,578	$	22,120
Intelligent Cloud		14,524		17,710
More Personal Computing		3,694		4,311


Total	$	36,796	$	44,141

Changes in unearned revenue were as follows:

(In millions)


Nine Months Ended March 31, 2022

Balance, beginning of period	$	44,141
Deferral of revenue		70,939
Recognition of unearned revenue		(78,284	)


Balance, end of period	$	36,796

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $160 billion as of March 31, 2022, of which $155 billion is related to the commercial portion of revenue. We expect to recognize approximately 50% of this revenue over the next 12 months and the remainder thereafter.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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BUSINESS COMBINATIONS

9 Months Ended

Mar. 31, 2022

Business Combinations [Abstract]

BUSINESS COMBINATIONS

NOTE 7 — BUSINESS COMBINATIONS

Nuance Communications, Inc.

On March 4, 2022, we completed our acquisition of Nuance Communications, Inc. (“Nuance”) for a total purchase price of $18.8 billion, consisting primarily of cash. Nuance is a cloud and artificial intelligence (“AI”) software provider with healthcare and enterprise AI experience, and the acquisition will build on our industry-specific cloud offerings. The financial results of Nuance have been included in our consolidated financial statements since the date of the acquisition. Nuance is reported as part of our Intelligent Cloud segment.

The purchase price allocation as of the date of acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available.

The major classes of assets and liabilities to which we have preliminarily allocated the purchase price were as follows:

(In millions)


Goodwill ^(a)	$	16,295
Intangible assets		4,340
Other assets		29
Other liabilities ^(b)		(1,897	)


Total	$	18,767

(a)	Goodwill was assigned to our Intelligent Cloud segment and was primarily attributed to increased synergies that are expected to be achieved from the integration of Nuance. None of the goodwill is expected to be deductible for income tax purposes.

(b)

Includes $986 million of convertible senior notes issued by Nuance in 2015 and 2017, of which $947 million was redeemed prior to March 31, 2022. The remaining $39 million of notes are redeemable through their respective maturity dates and are included in other current liabilities on our consolidated balance sheets as of March 31, 2022.

Following are the details of the purchase price allocated to the intangible assets acquired:

(In millions, except average life)	Amount			Weighted Average Life


Customer-related	$	2,560	9 years
Technology-based		1,560	4 years
Marketing-related		220	4 years


Total	$	4,340	7 years

ZeniMax Media Inc.

On March 9, 2021, we completed our acquisition of ZeniMax Media Inc. (“ZeniMax”), the parent company of Bethesda Softworks LLC (“Bethesda”), for a total purchase price of $8.1 billion, consisting primarily of cash. The purchase price included $766 million of cash and cash equivalents acquired. Bethesda is one of the largest, privately held game developers and publishers in the world, and brings a broad portfolio of games, technology, and talent to Xbox. The financial results of ZeniMax have been included in our consolidated financial statements since the date of the acquisition. ZeniMax is reported as part of our More Personal Computing segment.

The allocation of the purchase price to goodwill was completed as of December 31, 2021. The major classes of assets and liabilities to which we have allocated the purchase price were as follows:

(In millions)


Cash and cash equivalents	$	766
Goodwill		5,510
Intangible assets		1,968
Other assets		121
Other liabilities		(244	)


Total	$	8,121

Goodwill was assigned to our More Personal Computing segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of ZeniMax. None of the goodwill is expected to be deductible for income tax purposes.

Following are details of the purchase price allocated to the intangible assets acquired:

(In millions, except average life)	Amount		Weighted Average Life


Technology-based	$	1,341		4 years
Marketing-related		627		11 years


Total	$	1,968		6 years

Activision Blizzard, Inc.

On January 18, 2022, we entered into a definitive agreement to acquire Activision Blizzard, Inc. (“Activision Blizzard”) for $95.00 per share in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. Activision Blizzard is a leader in game development and an interactive entertainment content publisher. The acquisition will accelerate the growth in our gaming business across mobile, PC, console, and cloud and will provide building blocks for the metaverse. We expect this acquisition to close in fiscal year 2023, subject to approval by Activision Blizzard’s shareholders, the satisfaction of certain regulatory approvals, and other customary closing conditions.

INVENTORIES

9 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 6 — INVENTORIES

The components of inventories were as follows:

(In millions)


	March 31, 2022		June 30, 2021

Raw materials	$	1,369	$	1,190
Work in process		87		79
Finished goods		1,840		1,367


Total	$	3,296	$	2,636

Segment Revenue (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Revenue	$ 49,360	$ 41,706	$ 146,405	$ 121,936
Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue	15,789	13,552	46,764	39,224
Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue	19,051	15,118	54,342	42,705
More Personal Computing
Segment Reporting Information [Line Items]
Revenue	$ 14,520	$ 13,036	$ 45,299	$ 40,007

Segment Information and Geographic Data - Additional Information (Detail)	9 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Sales to an individual customer	No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for the three or nine months ended March 31, 2022 or 2021.

STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Millions	Total	Common stock and paid-in capital	Retained earnings	Retained earnings Cumulative effect of accounting changes	Accumulated other comprehensive income	Accumulated other comprehensive income Cumulative effect of accounting changes
Balance, beginning of period at Jun. 30, 2020		$ 80,552	$ 34,566	$ (32)	$ 3,186	$ 10
Accounting Standards Update [Extensible Enumeration]	us-gaap:AccountingStandardsUpdate201601Member
Common stock issued		1,513
Net income	$ 44,813		44,813
Other comprehensive loss	(1,734)				(1,734)
Common stock cash dividends	(12,665)		(12,665)
Common stock repurchased		(4,322)	(15,947)
Stock-based compensation expense		4,547
Other, net		18
Balance, end of period at Mar. 31, 2021	$ 134,505	82,308	50,735		1,462
Cash dividends declared per common share	$ 1.68
Balance, beginning of period at Dec. 31, 2020		81,896	44,973	0	3,367	0
Accounting Standards Update [Extensible Enumeration]	us-gaap:AccountingStandardsUpdate201601Member
Common stock issued		396
Net income	$ 15,457		15,457
Other comprehensive loss	(1,905)				(1,905)
Common stock cash dividends	(4,214)		(4,214)
Common stock repurchased		(1,528)	(5,481)
Stock-based compensation expense		1,525
Other, net		19
Balance, end of period at Mar. 31, 2021	$ 134,505	82,308	50,735		1,462
Cash dividends declared per common share	$ 0.56
Balance, beginning of period at Jun. 30, 2021	$ 141,988	83,111	57,055	0	1,822	0
Accounting Standards Update [Extensible Enumeration]	us-gaap:AccountingStandardsUpdate201601Member
Common stock issued		1,380
Net income	$ 55,998		55,998
Other comprehensive loss	(4,298)				(4,298)
Common stock cash dividends	(13,936)		(13,931)
Common stock repurchased		(4,401)	(19,489)
Stock-based compensation expense		5,505
Other, net		172
Balance, end of period at Mar. 31, 2022	$ 162,924	85,767	79,633		(2,476)
Cash dividends declared per common share	$ 1.86
Balance, beginning of period at Dec. 31, 2021		84,528	75,045	$ 0	437	$ 0
Accounting Standards Update [Extensible Enumeration]	us-gaap:AccountingStandardsUpdate201601Member
Common stock issued		477
Net income	$ 16,728		16,728
Other comprehensive loss	(2,913)				(2,913)
Common stock cash dividends	(4,639)		(4,634)
Common stock repurchased		(1,313)	(7,506)
Stock-based compensation expense		1,906
Other, net		169
Balance, end of period at Mar. 31, 2022	$ 162,924	$ 85,767	$ 79,633		$ (2,476)
Cash dividends declared per common share	$ 0.62

STOCKHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2022

STOCKHOLDERS' EQUITY

NOTE 15 — STOCKHOLDERS’ EQUITY

Share Repurchases

On September 18, 2019, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. This share repurchase program commenced in February 2020 and was completed in November 2021.

On September 14, 2021, our Board of Directors approved a share repurchase program authorizing up to $60.0 billion in share repurchases. This share repurchase program commenced in November 2021, following completion of the program approved on September 18, 2019, has no expiration date, and may be terminated at any time. As of March 31, 2022, $48.5 billion remained of this $60.0 billion share repurchase program.

We repurchased the following shares of common stock under the share repurchase programs:

(In millions)	Shares		Amount			Shares		Amount


Fiscal Year				2022					2021

First Quarter		21		$	6,200		25		$	5,270
Second Quarter		20			6,233		27			5,750
Third Quarter		26			7,800		25			5,750


Total		67		$	20,233		77		$	16,770

All repurchases were made using cash resources. Shares repurchased during the third quarter of fiscal year 2022 were under the share repurchase program approved on September 14, 2021. Shares repurchased during the second quarter of fiscal year 2022 were under the share repurchase programs approved on both September 14, 2021 and September 18, 2019. All other shares repurchased were under the share repurchase program approved on September 18, 2019. The above table excludes shares repurchased to settle employee tax withholding related to the vesting of stock awards of $1.0 billion and $3.7 billion for the three and nine months ended March 31, 2022, respectively, and $1.1 billion and $3.4 billion the three and nine months ended March 31, 2021, respectively.

Dividends

Our Board of Directors declared the following dividends:

Declaration Date	Record Date	Payment Date		Dividend Per Share		Amount


Fiscal Year 2022						(In millions)

September 14, 2021	November 18, 2021	December 9, 2021	$	0.62	$	4,652
December 7, 2021	February 17, 2022	March 10, 2022		0.62		4,645
March 14, 2022	May 19, 2022	June 9, 2022		0.62		4,639


Total			$	1.86	$	13,936


Fiscal Year 2021

September 15, 2020	November 19, 2020	December 10, 2020	$	0.56	$	4,230
December 2, 2020	February 18, 2021	March 11, 2021		0.56		4,221
March 16, 2021	May 20, 2021	June 10, 2021		0.56		4,214


Total			$	1.68	$	12,665

The dividend declared on March 14, 2022 was included in other current liabilities as of March 31, 2022.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Gains (Losses) on Derivative Instruments Recognized in Other Income (Expense), Net (Detail) - Other Income (Expense), Net - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	$ 35	$ (130)	$ 308	$ 67
Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	(29)	(17)	(41)	(10)
Fair Value Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	0	482	49	189
Hedged items	0	(474)	(50)	(181)
Excluded from effectiveness assessment	0	7	4	25
Fair Value Hedges \| Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(57)	(41)	(71)	(50)
Hedged items	61	46	83	62
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income	$ (15)	$ (26)	$ (44)	$ 15

Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 04, 2022
Nuance Communications Inc.
Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 4,340	$ 4,340

Carrying Amount of Goodwill (Detail)
$ in Millions

9 Months Ended

Mar. 31, 2022

USD ($)

Productivity and Business Processes

$ 49,711

17,702

(42)

67,371

24,317

599

(9)

24,907

Beginning Balance

13,256

Acquisitions

16,879

^[1]

Other

Ending Balance

30,218

More Personal Computing

12,138

224

(116)

$ 12,246

[1]	Includes goodwill of $16.3 billion related to Nuance. See Note 7 – Business Combinations for further information

INCOME TAXES

9 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11 — INCOME TAXES

Effective Tax Rate

Our effective tax rate was 17% and 10% for the three months ended March 31, 2022 and 2021, respectively, and 11% and 13% for the nine months ended March 31, 2022 and 2021, respectively. The increase in our effective tax rate for the three months ended March 31, 2022 compared to the prior year was primarily due to tax benefits from a decision by the India Supreme Court on withholding taxes in the case of Engineering Analysis Centre of Excellence Private Limited vs The Commissioner of Income Tax and an agreement between the U.S. and India tax authorities related to transfer pricing in fiscal year 2021, a decrease in tax benefits relating to stock-based compensation, and changes in the mix of our income before income taxes between the U.S. and foreign countries. The decrease in our effective tax rate for the nine months ended March 31, 2022 compared to the prior year was primarily due to a $3.3 billion net income tax benefit in the first quarter of fiscal year 2022 related to the transfer of intangible properties, offset in part by tax benefits from the India Supreme Court decision on withholding taxes and an agreement between the U.S. and India tax authorities related to transfer pricing in fiscal year 2021, and changes in the mix of our income before income taxes between the U.S. and foreign countries.

We have historically paid India withholding taxes on software sales through distributor withholding and tax audit assessments in India. In March 2021, the India Supreme Court ruled favorably for companies in 86 separate appeals, some dating back to 2012, holding that software sales are not subject to India withholding taxes. Although we were not a party to the appeals, our software sales in India were determined to be not subject to withholding taxes. Therefore, we recorded a net income tax benefit of $620 million in the third quarter of fiscal year 2021 to reflect the results of the India Supreme Court decision impacting fiscal year 1996 through fiscal year 2016.

In the first quarter of fiscal year 2022, we transferred certain intangible properties from our Puerto Rico subsidiary to the U.S. The transfer of intangible properties resulted in a $3.3 billion net income tax benefit in the first quarter of fiscal year 2022, as the value of future U.S. tax deductions exceeds the current tax liability from the U.S. global intangible low-taxed income tax.

Our effective tax rate was lower than the U.S. federal statutory rate for the three and nine months ended March 31, 2022, primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations center in Ireland, tax benefits relating to stock-based compensation, and for the nine months ended March 31, 2022, the net income tax benefit related to the transfer of intangible properties.

Uncertain Tax Positions

As of March 31, 2022 and June 30, 2021, unrecognized tax benefits and other income tax liabilities were $16.7 billion and $15.9 billion, respectively, and are included in long-term income taxes in our consolidated balance sheets.

We settled a portion of the Internal Revenue Service (“IRS”) audit for tax years 2004 to 2006 in fiscal year 2011. In February 2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and reopened the audit phase of the examination. We also settled a portion of the IRS audit for tax years 2007 to 2009 in fiscal year 2016, and a portion of the IRS audit for tax years 2010 to 2013 in fiscal year 2018. In the second quarter of fiscal year 2021, we settled an additional portion of the IRS audits for tax years 2004 to 2013 and made a payment of $1.7 billion, including tax and interest. We remain under audit for tax years 2004 to 2017.

As of March 31, 2022, the primary unresolved issues for the IRS audits relate to transfer pricing, which could have a material impact in our consolidated financial statements when the matters are resolved. We believe our allowances for income tax contingencies are adequate. We have not received a proposed assessment for the unresolved key transfer pricing issues and do not expect a final resolution of these issues in the next 12 months. Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for these issues within the next 12 months.

We are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to examination for tax years 1996 to 2021, some of which are currently under audit by local tax authorities. The resolution of each of these audits is not expected to be material to our consolidated financial statements.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Leases - Additional Information (Detail) $ in Billions	9 Months Ended
Leases - Additional Information (Detail) $ in Billions	Mar. 31, 2022 USD ($)
Operating Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 5.7
Finance Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 5.9
Minimum
Leases [Line Items]
Operating and Finance leases, remaining lease terms	1 year
Additional operating leases that have not yet commenced, lease terms	1 year
Additional finance leases that have not yet commenced, lease terms	1 year
Maximum
Leases [Line Items]
Operating and Finance leases, remaining lease terms	19 years
Operating leases, options to extend leases term	5 years
Finance leases, options to extend leases term	5 years
Operating and Finance leases, options to terminate leases term	1 year
Additional operating leases that have not yet commenced, lease terms	17 years
Additional finance leases that have not yet commenced, lease terms	17 years

Major Classes of Assets and Liabilities Allocated Purchase Price (Detail) - USD ($)
$ in Millions

Mar. 31, 2022

Mar. 04, 2022

Jun. 30, 2021

Mar. 09, 2021

Business Acquisition [Line Items]

Nuance Communications Inc.

$ 67,371

$ 49,711

Business Acquisition [Line Items]

16,300

$ 16,295

^[1]

Intangible assets

$ 4,340

4,340

Other assets

Other liabilities

^[2]

(1,897)

Total

$ 18,767

ZeniMax Media Inc.

Business Acquisition [Line Items]

$ 766

5,510

1,968

121

(244)

$ 8,121

[1]	Goodwill was assigned to our Intelligent Cloud segment and was primarily attributed to increased synergies that are expected to be achieved from the integration of Nuance. None of the goodwill is expected to be deductible for income tax purposes
[2]	Includes $986 million of convertible senior notes issued by Nuance in 2015 and 2017, of which $947 million was redeemed prior to March 31, 2022. The remaining $39 million of notes are redeemable through their respective maturity dates and are included in other current liabilities on our consolidated balance sheets

Finite-Lived Intangible Assets (Detail) - USD ($)
$ in Millions

Mar. 31, 2022

Jun. 30, 2021

$ 24,524

^[1]

$ 19,975

(13,176)

(12,175)

11,348

7,800

Technology-based

11,570

9,779

(7,346)

(7,007)

4,224

2,772

Customer-related

7,578

4,958

(3,366)

(2,859)

4,212

2,099

Marketing-related

5,033

4,792

(2,131)

(1,878)

2,902

2,914

Contract-based

343

446

(333)

(431)

Maturities of Long-term Debt Including Current Portion

$ 10

$ 15

[1]	Includes intangible assets of $4.3 billion related to Nuance. See Note 7 – Business Combinations for further information.

Income Taxes - Additional Information Regarding Examinations (Detail) - USD ($) $ in Billions	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2020	Mar. 31, 2022	Jun. 30, 2018	Jun. 30, 2016	Jun. 30, 2011
Earliest Tax Year \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination		1996
Latest Tax Year \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination		2021
Internal Revenue Service (IRS)
Income Tax Examination [Line Items]
Settlement payments including tax and interest	$ 1.7
Internal Revenue Service (IRS) \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2004		2010	2007	2004
Tax years subject to examination		2004
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2013		2013	2009	2006
Tax years subject to examination		2017

DEBT (Tables)

9 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

The components of debt were as follows:

(In millions, issuance by calendar year)	Maturities (calendar year)				Stated Interest Rate				Effective Interest Rate			March 31, 2022			June 30, 2021


2009 issuance of $3.8 billion ^(a)				2039				5.20%			5.24%	$	520		$	520
2010 issuance of $4.8 billion ^(a)				2040				4.50%			4.57%		486			486
2011 issuance of $2.3 billion ^(a)				2041				5.30%			5.36%		718			718
2012 issuance of $2.3 billion ^(a)		2022	–	2042		2.13%	–	3.50%	2.24%	–	3.57%		1,204			1,204
2013 issuance of $5.2 billion ^(a)		2023	–	2043		2.38%	–	4.88%	2.47%	–	4.92%		2,814			2,814
2013 issuance of €4.1 billion		2028	–	2033		2.63%	–	3.13%	2.69%	–	3.22%		2,559			4,803
2015 issuance of $23.8 billion ^(a)		2022	–	2055		2.65%	–	4.75%	2.72%	–	4.78%		10,805			12,305
2016 issuance of $19.8 billion ^(a)		2023	–	2056		2.00%	–	3.95%	2.10%	–	4.03%		9,430			12,180
2017 issuance of $17.0 billion ^(a)		2024	–	2057		2.88%	–	4.50%	3.04%	–	4.53%		8,945			10,695
2020 issuance of $10.0 billion ^(a)		2050	–	2060		2.53%	–	2.68%	2.53%	–	2.68%		10,000			10,000
2021 issuance of $8.2 billion ^(a)		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%		8,185			8,185


Total face value													55,666			63,910
Unamortized discount and issuance costs													(481	)		(511	)
Hedge fair value adjustments ^(b)													(43	)		40
Premium on debt exchange ^(a)													(5,216	)		(5,293	)


Total debt													49,926			58,146
Current portion of long-term debt													(1,749	)		(8,072	)


Long-term debt												$	48,177		$	50,074

(a)	In March 2021 and June 2020, we exchanged a portion of our existing debt at a premium for cash and new debt with longer maturities. The premiums are amortized over the terms of the new debt.

(b)	Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.

The following table outlines maturities of our long-term debt, including the current portion, as of March 31, 2022:

(In millions)


Year Ending June 30,

2022 (excluding the nine months ended March 31, 2022)	$	0
2023		2,750
2024		5,250
2025		2,250
2026		3,000
Thereafter		42,416


Total	$	55,666

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Investments Debt And Equity Securities [Abstract]

INVESTMENTS (Tables)

9 Months Ended

Mar. 31, 2022

Investment Components

The components of investments were as follows:

(In millions)	Fair Value Level	Adjusted Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity Investments


March 31, 2022

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	883	$	0	$	0		$	883	$	802	$	81	$	0
Certificates of deposit	Level 2		3,045		0		0			3,045		3,003		42		0
U.S. government securities	Level 1		79,211		347		(1,174	)		78,384		3		78,381		0
U.S. agency securities	Level 2		417		0		(6	)		411		0		411		0
Foreign government bonds	Level 2		508		3		(10	)		501		0		501		0
Mortgage- and asset-backed securities	Level 2		602		2		(14	)		590		0		590		0
Corporate notes and bonds	Level 2		11,910		31		(277	)		11,664		0		11,664		0
Corporate notes and bonds	Level 3		45		0		0			45		0		45		0
Municipal securities	Level 2		324		34		(7	)		351		0		351		0
Municipal securities	Level 3		103		0		(7	)		96		0		96		0


Total debt investments		$	97,048	$	417	$	(1,495	)	$	95,970	$	3,808	$	92,162	$	0


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	1,857	$	1,234	$	0	$	623
Equity investments	Other									6,284		0		0		6,284


Total equity investments									$	8,141	$	1,234	$	0	$	6,907


Cash									$	7,456	$	7,456	$	0	$	0
Derivatives, net^(a)										33		0		33		0


Total									$	111,600	$	12,498	$	92,195	$	6,907

(In millions)	Fair Value Level	Adjusted Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity Investments


June 30, 2021

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	4,316	$	0	$	0		$	4,316	$	1,331	$	2,985	$	0
Certificates of deposit	Level 2		3,615		0		0			3,615		2,920		695		0
U.S. government securities	Level 1		90,664		3,832		(111	)		94,385		1,500		92,885		0
U.S. agency securities	Level 2		807		2		0			809		0		809		0
Foreign government bonds	Level 2		6,213		9		(2	)		6,220		225		5,995		0
Mortgage- and asset-backed securities	Level 2		3,442		22		(6	)		3,458		0		3,458		0
Corporate notes and bonds	Level 2		8,443		249		(9	)		8,683		0		8,683		0
Corporate notes and bonds	Level 3		63		0		0			63		0		63		0
Municipal securities	Level 2		308		63		0			371		0		371		0
Municipal securities	Level 3		95		0		(7	)		88		0		88		0


Total debt investments		$	117,966	$	4,177	$	(135	)	$	122,008	$	5,976	$	116,032	$	0


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	1,582	$	976	$	0	$	606
Equity investments	Other									5,378		0		0		5,378


Total equity investments									$	6,960	$	976	$	0	$	5,984


Cash									$	7,272	$	7,272	$	0	$	0
Derivatives, net^(a)										78		0		78		0


Total									$	136,318	$	14,224	$	116,110	$	5,984

(a)	Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments.

Unrealized Losses on Debt Investments

Debt investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:

	Less than 12 Months					12 Months or Greater								Total Unrealized Losses


(In millions)		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


March 31, 2022

U.S. government and agency securities	$	35,798	$	(918	)	$	2,308	$	(262	)	$	38,106	$	(1,180	)
Foreign government bonds		419		(6	)		30		(4	)		449		(10	)
Mortgage- and asset-backed securities		450		(13	)		33		(1	)		483		(14	)
Corporate notes and bonds		8,133		(241	)		461		(36	)		8,594		(277	)
Municipal securities		125		(7	)		57		(7	)		182		(14	)


Total	$	44,925	$	(1,185	)	$	2,889	$	(310	)	$	47,814	$	(1,495	)

	Less than 12 Months					12 Months or Greater								Total Unrealized Losses


(In millions)		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


June 30, 2021

U.S. government and agency securities	$	5,294	$	(111	)	$	0	$	0		$	5,294	$	(111	)
Foreign government bonds		3,148		(1	)		5		(1	)		3,153		(2	)
Mortgage- and asset-backed securities		1,211		(5	)		87		(1	)		1,298		(6	)
Corporate notes and bonds		1,678		(8	)		34		(1	)		1,712		(9	)
Municipal securities		58		(7	)		1		0			59		(7	)


Total	$	11,389	$	(132	)	$	127	$	(3	)	$	11,516	$	(135	)

Debt Investment Maturities

(In millions)	Adjusted Cost Basis		Estimated Fair Value


March 31, 2022

Due in one year or less	$	20,401	$	20,496
Due after one year through five years		56,463		56,076
Due after five years through 10 years		18,807		18,049
Due after 10 years		1,377		1,349


Total	$	97,048	$	95,970

Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share Basic And Diluted [Abstract]
Net income available for common shareholders (A)	$ 16,728	$ 15,457	$ 55,998	$ 44,813
Weighted average outstanding shares of common stock (B)	7,493	7,539	7,504	7,554
Dilutive effect of stock-based awards	41	58	48	63
Common stock and common stock equivalents (C)	7,534	7,597	7,552	7,617
Earnings Per Share
Basic (A/B)	$ 2.23	$ 2.05	$ 7.46	$ 5.93
Diluted (A/C)	$ 2.22	$ 2.03	$ 7.41	$ 5.88

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Nuance Communications Inc.

BUSINESS COMBINATIONS (Tables)

9 Months Ended

Mar. 31, 2022

Major Classes of Assets and Liabilities Allocated Purchase Price

The major classes of assets and liabilities to which we have preliminarily allocated the purchase price were as follows:

(In millions)


Goodwill ^(a)	$	16,295
Intangible assets		4,340
Other assets		29
Other liabilities ^(b)		(1,897	)


Total	$	18,767

(a)	Goodwill was assigned to our Intelligent Cloud segment and was primarily attributed to increased synergies that are expected to be achieved from the integration of Nuance. None of the goodwill is expected to be deductible for income tax purposes.

(b)

Acquired Intangible Assets

Following are the details of the purchase price allocated to the intangible assets acquired:

(In millions, except average life)	Amount			Weighted Average Life


Customer-related	$	2,560	9 years
Technology-based		1,560	4 years
Marketing-related		220	4 years


Total	$	4,340	7 years

ZeniMax Media Inc.

Major Classes of Assets and Liabilities Allocated Purchase Price

The major classes of assets and liabilities to which we have allocated the purchase price were as follows:

(In millions)


Cash and cash equivalents	$	766
Goodwill		5,510
Intangible assets		1,968
Other assets		121
Other liabilities		(244	)


Total	$	8,121

Acquired Intangible Assets

Following are details of the purchase price allocated to the intangible assets acquired:

(In millions, except average life)	Amount		Weighted Average Life


Technology-based	$	1,341		4 years
Marketing-related		627		11 years


Total	$	1,968		6 years

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Mar. 31, 2022